Wall Street trades mixed as tech struggles continue

Wall Street trades mixed as tech struggles continue

Wall Street’s major market averages were mixed on Friday as technology stocks came under further pressure amid an already challenging trading week.

The blue-chip Dow DJI was last +0.5%, the benchmark S&P 500 (SP500) was +0.1%, and the tech-focused Nasdaq Composite COMP was -0.4%.

From a sector-by-sector basis, nine of the 11 segments were in the green, led by materials. At the other end of the spectrum, info tech struggled the most.

A pullback in artificial intelligence-related stocks has weighed on the broader market this week, with memory chip stocks among the hardest-hit segments as investors reassessed the sector's recent performance.

On the economic calendar, industrial production growth accelerated more than expected in September. U.S. industrial production data rose 0.7% M/M in September, versus the 0.4% forecasted level.

The U.S. 2-year Treasury yield US02Y held even at 4.76%, the U.S. 10-year Treasury yield US10Y ticked up 3 basis points to 5.11%, and the U.S. 30-year Treasury yield US30Y added 3 basis points to 5.44%.

“We think that investors should start thinking of a 5%+ 10-year Treasury yield as the new normal, not a brief aberration. For years, the Treasury enjoyed the luxury of having huge rate insensitive buyers, such as China, Japan, and the Fed, but those buyers are gone now and Treasuries have to offer competitive returns at a time when they are increasing supply due to the government’s profligate spending, which itself is giving creditors reason to require a higher rate of return,” Dennis Follmer of Montis Financial stated.

As for stocks that were on the move, shares of Nucor NUE advanced +3.1%, while shares of CoreWeave CRWV fell -6%.DisclaimerContent provided by Seeking Alpha is intended for information purposes only, and that Seeking Alpha does not offer any personalist investment advice and is not a licensed securities dealer, broker, US investment adviser or investment bank.